A resident has permission to live in a country. A citizen is a full legal member of it. That one difference drives most of the others: citizens can vote, hold a passport, return at any time and cannot be deported, while residents, even permanent ones, hold a status that can be lost.
The confusion usually comes from the word 'resident', which means different things to an immigration office and a tax office. You can be a permanent resident of a country without being its tax resident, and a tax resident without holding any residence permit at all.
This guide compares residents and citizens on the points that matter most to people who move abroad, using the United States, Canada and the United Kingdom as examples, and then explains how tax residence fits in.
Key takeaways
- Citizenship is permanent membership; residence, including permanent residence, is a permission that comes with conditions.
- Permanent residents usually cannot vote in national elections, cannot hold a passport of that country, and can be removed for serious crimes or long absences.
- Many permanent resident statuses have absence rules, such as Canada's 730 days in five years.
- Tax residence is a separate legal test from immigration residence. Most countries tax residents, not citizens, but the US taxes both its citizens and green card holders.
- Moving from resident to citizen can affect your other nationality, so check dual citizenship rules first.
Four statuses that people confuse
The table shows the four statuses most people mean when they talk about residents and citizens.
| Status | Who grants it | What it gives | How it is usually lost |
|---|---|---|---|
| Temporary resident | Immigration authority | Right to live there for a set period, often tied to a job, study or income | Expiry, change of circumstances, breach of conditions |
| Permanent resident | Immigration authority | Indefinite right to live and work there | Long absences, serious crimes, fraud |
| Tax resident | Tax law, applied each year | Liability to tax there, often on worldwide income | Changing your days, home and ties |
| Citizen | Nationality law | Full membership, passport, right to return | Rarely, by renunciation or deprivation |
The first two describe your immigration status. The third describes your tax position. The fourth describes your nationality. A person can hold several of these in different countries at the same time.
What citizens have that residents usually do not
The unconditional right to enter and stay
A citizen can always return to their country and stay there indefinitely. A permanent resident's right to stay often depends on keeping a connection with the country. In Canada, permanent residents must have been physically present for at least 730 days in the past five years, according to Immigration, Refugees and Citizenship Canada. In the United States, a long absence can lead officials to conclude that a green card holder has abandoned permanent residence, which is why people who expect to be away for a year or more often apply for a reentry permit in advance. In the UK, indefinite leave to remain generally lapses after more than two years outside the country.
Voting and public office
Voting is the clearest dividing line. US permanent residents cannot vote in federal elections, and USCIS lists voting among the activities that are not open to them, according to its page on the rights and responsibilities of green card holders. Canadian permanent residents cannot vote or run for office. There are notable exceptions elsewhere: New Zealand lets permanent residents vote in national elections after a year of residence, Chile lets long-term foreign residents vote, EU citizens can vote in local and European Parliament elections in the member state where they live, and Irish and qualifying Commonwealth citizens can vote in UK general elections.
A passport and consular protection
Only citizens can hold a country's passport. That affects visa-free travel, and it also affects help abroad: embassies protect their own nationals, not residents. A permanent resident who gets into trouble in a third country depends on the embassy of their country of citizenship.
Protection from removal
Citizens cannot be deported from their own country. Permanent residents can be removed for serious criminal convictions, immigration fraud and, in some countries, security grounds. Naturalized citizens are not always fully secure either: some countries, including the UK, can deprive a person of citizenship in limited circumstances, such as fraud in the application or on public-good grounds.
Jobs and security clearances
Most private-sector jobs are open to permanent residents. Some public-sector roles, positions that need high-level security clearance, and certain regulated posts are reserved for citizens. Canada's immigration department notes that permanent residents cannot hold some jobs that need a high-level security clearance.
What residents and citizens usually share
The overlap is larger than many people expect. Permanent residents in most countries can:
- Live, work and study anywhere in the country.
- Access public healthcare and many social benefits, sometimes after a waiting period.
- Own property and run a business, subject to rules on foreign ownership in some countries.
- Sponsor some family members, though often on less favorable terms than citizens.
- Rely on the protection of the law and the courts.
Obligations overlap too. Permanent residents must obey the law and generally pay tax like citizens. In the US, male green card holders aged 18 through 25 must register with the Selective Service. Singapore requires second-generation permanent residents to complete National Service.
Tax residence is a different question
Immigration status and tax status are decided by different laws. Your residence permit tells you whether you may live in a country. Tax law tells you whether that country may tax you, usually based on days of presence, a permanent home, family and economic ties. Our explainers on the 183-day rule and on how tax authorities decide where you live go through these tests.
A few consequences follow:
- Permanent resident, not tax resident. Someone with a residence card who spends most of the year elsewhere may not be tax resident there, depending on the country's rules.
- Tax resident, no permit needed. An EU citizen living in another member state, or a visitor who spends enough days in a country to meet its domestic test, can be tax resident without any special permit.
- Citizenship rarely decides tax. Almost every country taxes based on residence. The United States is the main exception, taxing citizens wherever they live, as explained in our guide to citizenship-based taxation.
- US green card holders are US tax residents. The IRS treats lawful permanent residents as resident aliens under the green card test, in addition to the substantial presence test for others, according to the IRS guide to tax residency status.
For people who live in several countries, a tax residency certificate is often the document banks and tax authorities ask for. Our guide to tax residency certificates explains what they show. One option some nomads look at is Honduras tax residency through Próspera, a ZEDE on Roatán with a flat lump-sum tax of $5,000 per year and a seven-day annual presence requirement. Whether any new tax residency changes your position elsewhere depends on the rules of the country you are leaving and any tax treaty that applies.
Should a permanent resident become a citizen?
That is a personal decision with legal, tax and family angles, and the answer depends on individual facts. Common considerations include:
- Dual citizenship rules. Some countries make you give up your old nationality when you naturalize, and some home countries end your citizenship automatically. See our list of countries that allow dual citizenship.
- Tax exposure. Naturalizing in the United States creates lifelong US tax filing obligations, even if you later move away, unless you formally give up citizenship.
- Security of status. Citizenship removes absence rules and most deportation risk, which matters for people who expect to travel or relocate again.
- Military service and other duties. Some countries impose conscription or jury service on citizens.
- Cost and time. Naturalization involves residence periods, tests, fees and, sometimes, a long wait.
Frequently asked questions
Can a permanent resident be deported?
Yes. Permanent residents can be removed for serious crimes, immigration fraud and, in some countries, extended absences or security reasons. Citizens cannot be deported from their own country.
Do permanent residents pay the same taxes as citizens?
In most countries, tax depends on residence, so a resident permanent resident and a resident citizen are taxed the same way. The difference appears when they leave: a US citizen remains taxable on worldwide income abroad, while a former resident without citizenship usually does not.
Can permanent residents vote?
Usually not in national elections. Some countries, such as New Zealand and Chile, let long-term residents vote, and EU citizens can vote in local and European elections where they live.
Can you lose permanent residency by living abroad?
Yes, in many countries. Canada requires 730 days of presence in five years, US green cards can be treated as abandoned after long absences, and UK indefinite leave to remain generally lapses after two years away.
Is a tax resident the same as a legal resident?
No. Legal residence is an immigration status. Tax residence is a separate test under tax law, usually based on days, a home and personal or economic ties. You can have one without the other.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.